Q. I am 61 years of age and a CSRS annuitant for the past last seven years. My wife is also a CSRS annuitant (age 55). We are both in the L2020 fund. With our joint annuities we are financially whole. My question is, we are contemplating transferring 50 percent of my 2020 fund (approximately $150,000) and 50 percent of her L2020 fund (approximately $70,000) to the L2030 fund. We are both in good health. Please comment on the transfer proposal and the amounts.
A. You’rr proposing increasing your exposure to the stock market and stock risk after those prices and risk have risen to record highs. Why? If you believe that the L 2030 fund is the right fund for the money, why didn’t you move to it earlier? I don’t understand your rationale.